One of the many applications of blockchain technology is its ability to fight fraud and secure connected system around the world. However, two promine
One of the many applications of blockchain technology is its ability to fight fraud and secure connected system around the world. However, two prominent security experts are expressing their skepticism on the issue.
“For a transaction to be trusted – whether the person is accessing the blockchain to make a transaction in the ledger, or going online to Overstock.com to buy a new TV using Bitcoins –there needs to be a strong understanding that the person involved in the transaction is the person authorised to perform it.”, as Michael Lynch, CSO of InAuth, wrote.
“There also must be validation that the device itself is “clean” and doesn’t contain malware or crimeware, and it isn’t being spoofed or potentially used as part of a velocity attack.”, as the chief strategy officer added.
The article written by him and published at Banking technology (bankingtech.com) explained that multi-factor authentication is necessary to confirm that the device or person is safe to interact with.
“Multi-factor authentication leverages various identifying elements to prove that the person doing the transaction is who they claim to be. These forms of proof can be something the person knows (for example, a PIN number), something the person possesses (e.g. an ATM card), or is intrinsic to them (e.g. a biometric fingerprint). Combining at least two or more of these elements is considered a multi-factor authentication strategy, but the more factors that can be validated the lower the risk of fraud.”, as he explained.
“Without multi-factor authentication in place, blockchain may not necessarily prevent someone from gaining access through fraudulent means to the ledger, fooling the system into believing they are someone else.”, he stated.
Another critique of the blockchain technology and its power is Tim Bray, the Canadian software developer behind XML specification.
“I’ve seen wave after wave of landscape-shifting technology sweep through the IT space: Personal computers, Unix, C, the Internet and Web, Java, REST, mobile, public cloud.”, as he wrote.
“And without exception, I observed that they were initially loaded in the back door by geeks, without asking permission, because they got shit done and helped people with their jobs.”, elaborated he.
“That’s not happening with blockchain. Not in the slightest. Which is why I don’t believe in it.”, as he opinionated.
Time will show whether the promise of blockhain technology will be realized into practice.